Shares of Uber (NYSE:UBER) stock are getting a boost on Tuesday morning with news that it is acquiring Drizly.
The ride-hailing company announced it reached an agreement for the deal priced at $1.1 billion in stock and cash. That said, who is Drizly and what do they do? Let’s take a closer look at Uber’s newest acquisition.
- According to the release, “Drizly is the leading on-demand alcohol marketplace in the United States.”
- Customers can have beer, wine or liquor delivered to their door within an hour.
- The service is available in more than 1,400 cities across parts the U.S.
- Its business is “designed to be fully compliant with local regulations” in those areas.
- The company works with local business to provide the beverages they are making available.
- “After the completion of the transaction, Drizly will become a wholly owned subsidiary of Uber. Drizly’s marketplace will eventually be integrated with the Uber Eats app, while also maintaining a separate Drizly app,” Uber said in its release.
- That said, Drizly will also continue to progress its business while benefitting from the consumer base and routing of Uber.
- Uber said it expects the deal to close during first half of 2021.
Dara Khosrowshahi, CEO of Uber, had this to say regarding the UBER stock deal:
Wherever you want to go and whatever you need to get, our goal at Uber is to make people’s lives a little bit easier. That’s why we’ve been branching into new categories like groceries, prescriptions and, now, alcohol. Cory [Rellas, Drizly co-founder and CEO] and his amazing team have built Drizly into an incredible success story, profitably growing gross bookings more than 300 percent year-over-year. By bringing Drizly into the Uber family, we can accelerate that trajectory by exposing Drizly to the Uber audience and expanding its geographic presence into our global footprint in the years ahead.
UBER stock was up 7.4% as of Tuesday morning.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Nick is a web editor at InvestorPlace.